rice straw

Making Cash From Rice Trash

by Jim Lane In our three-part series this month on utilizing waste resources, we’ll turn to rice straw, which is a major headache for Chinese and Indian emissions. Praj and Gevo are working hard on perfecting a technology to address this. Specifically, in the past month, Gevo (GEVO) also executed an agreement with Praj to develop jet fuel and isooctane from rice straw and other feedstocks. Gruber noted that “we believe this second-generation technology combination has great potential to address India’s rice straw burning problem and related air pollution, while generating low-carbon hydrocarbons for jet fuel and gasoline. Praj is a leader...
yeast feast

Enzyme Breakthroughs From The Majors

by Jim Lane Three big product announcements just in… DSM (e) breaks through on yield, efficiency with new yeast, enzyme offerings for corn fiber conversion. Novozymes (Copenhagen:NZYM-B; OTC:NVZMY) launches breakthrough techs “Fortiva” and “Innova Force”. DuPont (DD) extends with corn oil extraction tech. In Indiana, DSM leads the news out of the Fuel Ethanol Workshops with their latest yeast and enzyme offerings, eBOOST GT and eBREAK 1000F. Up to 60 percent GA reduction We’ve seen the eBOOST brand over the past year — so here’s a significant cost savings opportunity in the form of a line extension. eBOOST GT, which has been tested and qualified at commercial...
ADM HQ

ADM Separates Ethanol Business

Prelude to a spin-off? by Jim Lane The Archer Daniels Midland Company (ADM) is breaking news of breaking off their ethanol unit…and a tumbling 40% decline in profit. In Chicago, Archer Daniels Midland Company reported their financial results for the quarter ended March 31, 2019, but most interesting to us, they are looking at separating their ethanol business with the option of spinning it off completely. They are also taking other actions to restructure and deal with challenges they say include weather issues and trade pressures. ADM announced a “series of measures to continue to underpin long-term-value creation” which included: “First, to meet growing customer...

Neste’s Growing Circular Economies

by Jim Lane In California, waste feedstock from the city of Oakland is now being converted to Neste (NEF.F, NESTE.HE, NTOIF, NTOIY) MY Renewable Diesel and fuels the city’s fleet. The city, Neste, fuel distributor Western States Oil and local collectors for used cooking oil joined forces to gather waste cooking oils from restaurants and other businesses in the Oakland metropolitan area and convert it to fuel the city’s fleet. By making waste more valuable and supporting jobs that collect and treat it, this concept helps the local economy in the city while the cleaner-burning Neste MY Renewable Diesel improves the lives of its...
Kakinada India Aemetis

Aemetis: Indian Breakthrough, California Expansion

Aemetis, Inc. (AMTX:  NasdaqCM) just announced sales of biodiesel to gas stations in India.  The sales follow on the heels of a significant ruling in November 2018, by the Bombay High Court to remove restrictions on biodiesel that had barred direct to consumer sales by biofuel manufacturers.  The breakthrough into the India market is significant for the company, which has been operating a 50-million gallon integrated chemicals and fuels facility in Kakinada, India for several years.  Demand for renewable fuels has been strongest among fast growing economies like India, where decision makers fear dependence upon imported fossil fuels.  India produces only about 1% of global...

Aviation Biofuels: The Year of the Tree

by Jim Lane When the world’s leaders for sustainable aviation fuels have a general meeting the week before the COP24 global climate sessions (this year in Poland), you can bet that the focus will be breaking the “You Can Have Two out of Three Conundrum” of aviation fuels. Which is to say: affordable, available at scale, and sustainable, pick any two of the three. Fossil fuels are (usually) affordable and always available at scale. Sustainable jet fuels that are available at scale have generally not been affordable to date, and affordable sustainable fuels have been mostly explored at bench scale, so...
biodiesel operating margins

Renewable Energy Group’s New CEO: C.J. Warner

by Jim Lane In Iowa, white smoke has emerged from the Renewable Energy Group (REGI) conclave: Tesoro EVP and former Sapphire Energy CEO C.J. Warner has been named chief exec of Renewable Energy Group, at a pivotal moment for biodiesel in Washington and around the world and amidst a boom for renewable diesel like the world has never seen. REG has been making good progress with Wall Street under interim CEO Randy Howard and its share price has been on the rise, and the plants have been humming along nicely churning out hundreds of millions of gallons of biodiesel and the liquid gold...

Biofuels Industry Reacts To The New RVO Requirements

by Jim Lane What a whirlwind weekend after the U.S. Environmental Protection Agency announced their final renewable volume obligations (RVO) under the Renewable Fuel Standard program for 2019. “It’s just numbers,” some say, but oh no, not in the biofuels world. It’s never just numbers. This time it’s about waivers, fixing the damage done, and ensuring a bright future for biofuels. It’s about hollow chocolate bunnies and two steps back for some. French mathematician Rene Descartes is best known for “I think, therefore I am,” but he also said “Perfect numbers, like perfect men, are rare.” So true in this case as not...
GasolineGate

Report Alleges EPA Tests Skewed Against Ethanol By Oil Industry Influence

by Jim Lane In Washington, researchers for a report published by the Urban Air Initiative contend that “technical data that shows the nation has been exposed to decades of flawed test fuels and flawed driving tests, which in turn means flawed emissions results and mileage claims”.  The complete Beyond a Reasonable Doubt series from UAI is available here. Further, EPA emails obtained under the Freedom of Information Act reveal that, according to a report from Boyden Grey & Associates, the Agency appears to have directly solicited financial contributions and technical input, “especially on the fuel matrix,” from an oil industry controlled research organization. Of the...
To Renewable Diesel

Conversions To Renewable Diesel

by Helena Tavares Kennedy The seasons are changing in many parts of the world right now, but what really is changing this autumn is how the world is looking at renewable diesel. Phillips 66 and REG’s announcement about a new renewable diesel plant on the U.S. West Coast planned for 2021 comes after a notable increase in refineries that are being converted and changed over to renewable diesel. Change is good, especially in this case. As Bob Dylan sang, “For the loser now, Will be later to win, For the times they are a-changin’.” And who knew he was singing about the RFS...
Diamond Green Diesel

Darling’s Renewable Diesel Diamond

In July 2013, Darling Ingredients (DAR:  NYSE) and its joint venture partner Valero Energy (VLO:  NYSE) commissioned the largest facility in North America to convert waste animal fats into renewable diesel.  The facility was strategic located adjacent to Valero’s petroleum refining installation in Norco, Louisiana. At the time the facility was capable of pumping out 12,000 barrels of renewable diesel per day that could be dropped directly into Valero’s distribution network and blended with fossil fuel.  Even at that production level the facility showed promise to deliver strong dividends back to its owners.  The partners named their venture Diamond Green Diesel and celebrated the unparalleled achievement. The two partners in Diamond Green...
fractionation of corn

Corn Fractionation Improving Ethanol Production

Ethanol and isobutanol producer Gevo, Inc. (GEVO:  Nasdaq) is installing equipment in its Luverne, Minnesota plant to improve efficiency in corn processing.  The company is leasing a proprietary corn fractionation or slicing process developed Shockwave, LLC based in DesMoines, Iowa.  The new equipment is intended to increase by-product output, including feed protein products and food-grade corn oil.  With sales of more valuable by-products Gevo expects to improve overall profit margins.  Shareholders can expect to see results after the first quarter 2019, when the equipment installation is expected to be complete. Shockwave keeps a low profile with no corporate website and no one to answer phone calls.  However,...
American Coalition for ethanol logo

US Ethanol Industry Upset With 2019 Renewable Fuel Standard Proposal

The 2019 proposed US Renewable Fuel Standard proposed volumes attracted a major raspberry from the ethanol industry. As the American Coalition for Ethanol noted: “Unfortunately, EPA continues to take actions which undermine the letter and spirit of the statute and harm the rural economy. While refiners are reporting double-digit profits, the heart of America is being left behind. Farmers are losing money while refiners have the best of both worlds: fat profit margins and minimal RFS compliance costs. EPA needs to discard its refiner-win-at-all-costs mentality and get the RFS back on track.” “While the proposed rule purports to maintain the 15-billion-gallon conventional...
gevo logo

Biofuels & Biobased Earnings Roundup: Gevo

by Jim Lane The Top Line. In Colorado, Gevo (GEVO) reported Q2 revenues of $9.4 million compared with $7.5 million in the same period in 2017. During the second quarter of 2018, revenues derived at the Luverne Facility related to ethanol sales and related products were $8.8 million, an increase of approximately $2.0 million from the same period in 2017. This was primarily a result of increased ethanol production and distiller grain prices in the second quarter of 2018 versus the same period in 2017. Non-GAAP cash EBITDA loss in the three months ended June 30, 2018 was $2.6 million, compared...
Aemetis logo

Biofuels & Biobased Earnings Roundup: Aemetis

by Jim Lane The Top Line. In California, Aemetis (AMTX) reported that Q2 revenues increased $4.3 million and gross margins increased by $1.1 million compared to the second quarter of 2017. Similarly, during the first half of 2018, revenues increased $15.7 million and gross margins increased by $3.5 million compared to the first half of 2017. Revenues were $45.0 million for the second quarter of 2018 compared to $40.8 million for the second quarter of 2017, driven by an increase in ethanol sales volumes from 15.6 million gallons to 16.4 million gallons and by stronger wet distillers grain and glycerin demand and pricing. Operating loss...
novozymes logo

Biofuels & Biobased Earnings Roundup: Novozymes

by Jim Lane The Top Line. In Denmark, Novozymes (Copenhagen:NZYM-B; OTC:NVZMY) reported 4% organic sales growth for the first half and a 5 percent jump in Q2 with bioenergy reporting a 14% jump. Overall, net profit grew 5% and the company affirmed its 2018 guidance. Sales dipped to DKK 7,018m from DKK 7,278m, and EBITDA was flat at DKK 2,464m, although we primarily attribute that to currency shifts. The Big Highlights. Growth in Food & Beverages and Agriculture & Feed; Bioenergy particularly strong. Good ramp-up of recent product launches. +7% organic sales growth in emerging markets; Freshness & hygiene platform in Household Care developing according to...